Kenyan startup Sendy has launched to provide a platform for on-demand deliveries, connecting customers with reliable couriers who have been reviewed by other users.
Allowing customers to contract a reliable rider and pay via mobile money or Visa, Sendy seeks to overcome the lack of trust between customers and couriers and gains revenues through a 15 per cent fee on each transaction.
The startup is one of 37 Kenyan semi-finalists for mobile startups event PIVOT East, which will be held in Nairobi on June 24 and 25, and is waiting to discover whether it has earned the chance to pitch at the event.
Alloys Meshak, founder and chief executive officer (CEO) of Sendy, told HumanIPO the average customer in Kenya was unwilling to have a valuable item delivered by a stranger unless they had been endorsed beforehand, something his startup is trying to facilitate by crowdsourcing recommended riders.
“Last year my mum back in the village lost two bags of cement by randomly giving them to a rider to do the delivery, and that was after a 30 minutes wait by the roadside for available riders,” he said.
“Back in the city I am always frustrated that we have so many riders in town and you cannot send them to pick or deliver something because you cannot tell their availability or you simply don’t know them.”
He said Sendy provided a way to collect information on riders and connect them to customers, creating a new market. Both riders and customers are required to sign up on the site, on which they can negotiate a fee, make payments and post reviews.
“By crowdsourcing riders, Sendy will create millions of jobs for young people in Kenya and Africa and drive offline trading,” Meshak said.
“We believe Sendy is also positioned to drive the last mile e-commerce in Africa that is now growing.”
Meshak said the platform has already had positive reviews from both riders and customers, with riders able to tell where business is coming from and therefore position themselves in certain areas.
“They don’t have to pay high parking fees set by the local authorities that have recently caused riots, but now sit in a safe place and wait for that magical business call through Sendy,” he said.
An ‘Uber’ for Kenya? Sendy Is A Startup With A Unique Transport Solution
Posted on September 24, 2014 at 2:50pm by David Mwaura
Uber is a company based in San Francisco, California, United States it connects passengers with drivers of vehicles for hire. This is done via Uber’s smartphone application. Sendy is a start up company that has set out to connect Kenyans with bodabodas (motorcycle taxis) through its mobile app. It offers a customised Kenyan transport solution and presents an opportunity for those who desire to invest in it.
Erik Hersman co-founder of ihub Nairobi and Senior Ted Fellow writes:
Those who live in large African cities know how inefficient driving a car around the traffic-plagued metropolises can be. With the bad roads, traffic and high cost of fuel, motorcycle deliveries are a natural path.
In almost every town in Kenya you’ll find thousands of motorcycle guys sitting by the side of the road, ready to courier a package or serve as a taxi. They ride inexpensive $800-$1200 Chinese and Indian motorcycle brands, are generally not trained very well and have little safety equipment.
Motorcycles in downtown Monrovia, Liberia
How it Works
1. Download the Android app, or sign-in to the web app at Sendy.co.ke
2. Click the button that you have a delivery (or pickup) to be made.
3. You can see the map for where the rider is
4. Give him the package and directions
There is a GPS transponder on the motorcycle, and you get an SMS update when the delivery rider gets within 50m of the delivery zone. Once the package is delivered, there is another confirmation that the rider sends to Sendy, that comes to you as well. Payment is then made automatically by either credit card or M-pesa. At the end, you can rate your delivery rider, so that the best are known and get more business.
Challenges and Opportunities
With Africa’s growing need for logistics around eCommerce, Sendy presents a natural option for everyone from online shopping operators such as Jumia to your local supermarket. Motorcycles are already an accepted means of delivery for non-traditional business and large enterprises alike. The idea of capturing a large portion of this, without all the baggage of a normal courier company setup, is good for both Sendy and the everyday bodaboda/courier guy.
There are a couple hurdles to overcome to make this a simple process to onboard new customers, receive payment and then send payment to the courier riders. Unlike the US or EU, not everyone has a credit card, and the mobile payment options don’t allow for “pull” billing (instead, the customer has to “push” a payment to your service).
Sendy has corporate accounts such as BRCK and Ushahidi. For large businesses, finding a good payment process isn’t a problem. However, there will need to be some creative thinking for individuals and small businesses in order to make Sendy as painless as it promises to be.
The service verifies the courier riders, keeping their records on file, and providing the necessary technology for both tracking of motorcycle and communications with the rider. This means that qualified riders are picked, lessening the chance of getting robbed, and the ability to rate a courier creates a system that builds trust over time.
Sendy is raising a seed round of investment.
This year at Pivot East I had my first look at Sendy, which does for motorcycle courier deliveries and customers in Nairobi, what Uber did for taxis and passengers in San Francisco. At its heart, Sendy is about bringing the vast and growing motorcycle courier and delivery network in Africa into the digital and networked world.
Motorcycles in downtown Monrovia, Liberia
This is a big deal, because those of us who live in large African cities know just how inefficient driving a car around the traffic-plagued metropolises can be. With the bad roads, traffic and high cost of fuel, motorcycle deliveries are a natural path.
Indeed, in almost every city, from primary to tertiary throughout the continent, you’ll find thousands of motorcycle guys sitting by the side of the road, ready to courier a package or serve as a taxi. They ride inexpensive $800-$1200 Chinese and Indian motorcycle brands, are generally not trained very well, have little safety equipment and are some of the most reckless riders I know.
When Alloys Meshack, Sendy’s CEO, stepped onto stage for his 7-minute pitch, I was hooked. It sounded like the right team, a good business plan, and one that could scale well beyond Nairobi. I met with him again this month, and got into a lot more details around the business, and this encouraged my thoughts on both him and his team, as well as the broader scope of the business that they are building. It is truly impressive.
How it Works
Sendy delivery – Android app screenshot
I also signed up for the service, and then used it.
It’s as simple as this: 1. Download the Android app, or sign-in to the web app at Sendy.co.ke 2. Click the button that you have a delivery (or pickup) to be made. 3. You can see the map for where the rider is – my wait was approx 5 minutes for the courier to arrive 4. Give him the package and directions
There is a GPS transponder on the motorcycle, and you get an SMS update when the delivery rider gets withing 50m of the delivery zone. Once the package is delivered, there is another confirmation that the rider sends to Sendy, that comes to you as well. Payment is then made automatically by either credit card or Mpesa.
My delivery took about 25 minutes, from first Android app entry, to delivery about 5km away. At the end, you can rate your delivery rider, so that the best are known and get more business. I found my particular rider courteous and patient. He also told me that he makes about 5-6 deliveries a day with Sendy, and loves the service.
Challenges and Opportunities
The Sendy opportunity in eCommerce
With Africa’s growing need for logistics around eCommerce, Sendy presents a natural option for everyone from Jumia to your local supermarket. Motorcycles are already an accepted means of delivery for non-traditional business and large enterprises alike. The idea of capturing a large portion of this, without all the baggage of a normal courier company setup, is good for both Sendy and the everyday bodaboda/courier guy.
There are a couple hurdles to overcome to make this a simple process to onboard new customers, receive payment and then send payment to the courier riders. Unlike the US or EU, not everyone has a credit card, and the mobile payment options don’t allow for “pull” billing (instead, the customer has to “push” a payment to your service), which is clunky.
Sendy has corporate accounts (which is now used by both BRCK and Ushahidi), and for businesses, finding a good payment process isn’t a problem. However, there will need to be some creative thinking for individuals and small businesses in order to make Sendy as painless as it promises to be.
The service verifies the courier riders, keeping their records on file, and providing the necessary technology for both tracking of motorcycle and communications with the rider. This means that qualified riders are picked, lessening the chance of getting robbed, and the ability to rate a courier creates a system that builds trust over time.
The opportunities that Sendy represents are staggering. I encouraged Meshack to get Nairobi right quickly, then scale up and move beyond into other major cities in the region.
